Monopoly versus R&D-integrated Duopoly

Amir, Rabah and Nannerup, Niels and Stepanova, Anna and Eguiazarova, Eline
(2002)
Monopoly versus R&D-integrated Duopoly.
Manchester School, 70
(1).
pp. 88-100.
ISSN 1463-6786.
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Abstract

In the standard two-stage framework of R&D/product market competition, this paper provides a performance comparison between monopoly and the cartelized research joint venture, using two well-known models based on different versions of the R&D spillover process. According to the model with a wider scope of application, monopoly always leads to a higher propensity for R&D and, when R&D costs are low, to the best overall market performance. The results also allow for a comparison between the two underlying models of strategic R&D.